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Is this Large Market Cap Stock target price reasonable for NetEase, Inc. (NASDAQ:NTES)?

The company in question is, NetEase, Inc. (NASDAQ:NTES) currently with a stock price of 248.99 (4.60% today). The market cap for NetEase, Inc. is 32697.37, and is in the sector Technology, and Internet Software & Services industry. The target price for NetEase, Inc. is 226.1. Currently NetEase, Inc. is trading with a P/E of 23.81, and a forward P/E of 17.72. Average volume for NetEase, Inc. is 1194.94 and so far today it is 2185900.

Performance in the last year for NetEase, Inc. has been 119.97%. For EPS growth, NetEase, Inc. has seen a growth of 40.40%, and is looking to grow in the next year to 15.73%. More long term stats show that EPS growth has been 24.30% over the last five years and could be 4.03% for the next five years. NetEase, Inc. has seen sales growth quarter over quarter at 96.00%, with EPS growth quarter over quarter at 91.40%. The 20-day simple moving average is 19.81%, with the 200-day simple moving average coming to 47.37%.

Since the IPO date for NetEase, Inc. on the 6/30/2000, NetEase, Inc. has seen performance year to date to be 39.13%. With NetEase, Inc. trading at 248.99, the dividend yield is 1.25%, and the EPS is 10.46.

So could NetEase, Inc., be undervalued? Well as said before P/E is 23.81. The PEG is 5.91, P/S is 6.94 and the P/B is at 6.66. The P/cash is 7.74, with P/free cash flow at 25.35.

NetEase, Inc. ability to deal with debt shows that the current ratio is 2.9, and the quick ratio is *TBA. This is with long term debt/equity at 0, and total debt/equity at 0.07.

In terms of margins, NetEase, Inc. has a gross margin of 57.00%, an operating margin of 33.10% and a profit margin of 29.30%.Payout ratio for NetEase, Inc. is 0.00%. Return on assets come to 22.10% with return on investment coming to 19.00%.

Insider ownership for NetEase, Inc., is at 45.00% and institutional ownership comes to 62.80%. Outstanding shares are at 131.32. While shares float is 128.71. The float short is currently 3.00%, and short ratio is 3.23.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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